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What does stocks on margin mean?

Updated: 9/13/2023
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15y ago

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05/08/08 Buying on margin means that you are buying your stocks with borrowed money

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It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.

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15y ago
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Q: What does stocks on margin mean?
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how to short stocks


Buying stocks on credit is called?

margin


The purchase of stocks and bonds is?

buying on margin


When would an investigator not want to purchase stocks by buying on margin?

When he anticipate high volatility as it may lead to squaring of his stocks or positions due to decrease in minimal margin to support the position.


What does stock margin mean?

05/08/08 Buying on margin means that you are buying your stocks with borrowed money_______________________________________________________________It means that you've borrowed money to finance your stock purchase. This is very risky and may lead to a margin call if the share price declines.


What is penny margin?

Like penny stocks, penny margin describes very small margin just like the typical value of a coin of one cent.


What is wrong with buying stock on margin?

There is nothing wrong in buying stocks on margin. What the investor must recognize is that there is more risk involved. Aside from the purchased stocks going down, the added burden is having to pay interest on the borrowed funds or the "margin". The other danger is that an investor using margin can buy more stocks. Over speculation can either vastly be beneficial or be a personal income disaster.


What does it mean to buy stocks on margin?

Margin means you're borrowing money to buy stock. It's also one of the few ways you can lose more in the stock market than you invested in the first place.


What does it mean to buy stocks''on margin''?

Margin means you're borrowing money to buy stock. It's also one of the few ways you can lose more in the stock market than you invested in the first place.


Buying on margin was a method of buying stocks?

with mostly borrowed money


Explain why buing on margin can be a profitable system?

Buying on margin is profitable in a bull market especially when the stocks pay a high dividend.


What is the process where an investor borrows a percentage of the purchase price of stocks from the brokerage firm?

margin